Airlines have not given an "encouraging" response to a request from the Bermuda Government to decrease their airfares, a source told last night.

Last week a letter was sent at the request of Tourism and Transport Minister Ewart Brown to four major airlines servicing the Island: American, Continental, Delta, and US Airways. The letter, obtained by , expressed "serious concerns at the unprecedented high airfares to Bermuda from key US gateway cities this summer, which are now having a dramatic, adverse impact on advance hotel bookings".

The Bermuda Hotel Association has expressed particular concerns about bookings from July onwards, the highly-placed source said. The letter notes the challenges facing the airline industry, particularly regarding high fuel prices, yet goes on to ask that fares to the Island be addressed anyway. "We find that, in this increasingly price-sensitive leisure-travel market environment, unusually high airfares can be very detrimental to what otherwise should be a strong summer season for Bermuda."

Despite the Island being hundreds of miles closer to East Coast cities such as New York and Boston, flights to Bermuda are often significantly more expensive. A recent search on travel site Expedia.com showed flights in and out of Bermuda from New York and Boston to be $731 and $693 respectively, both for next month and over the Cup Match weekend, the peak of Bermuda's summer season. Meanwhile, a search for flights to Montego Bay, Jamaica from the same gateways at the same dates were set at about $560 (from New York) and $608 (from Boston).

Hoteliers have previously expressed concerns to about high airfares to the Island. Though admitting they were watching the problem with some concern, those who spoke with the newspaper said only competition from low-cost carriers such as USA3000 and JetBlue could lower airfares ? a sentiment that Tourism Minister Ewart Brown has agreed with.

Last night the source also agreed, saying that in light of the financial difficulties facing the major airlines at this time they are forced to maximise their revenue ? even if that means by charging much higher airfares.

"We need more competition," the source said. Though USA3000 will be increasing its flights to Bermuda with two more Philadelphia flights later this summer and JetBlue is expected to come on board in 2006, more daily low-cost carrier routes are needed.

"If legacy carriers can't or won't reduce prices then we have to go after other carriers," Fairmont Hamilton Princess general manager Ian Powell said previously.